Hedera (HBAR) open interest has hit a new all-time high following its 600% price increase in the last 30 days. This rise signifies the highest trader interaction with the token since its inception. 

Looking ahead, several key indicators suggest HBAR’s price rally and bullish momentum may persist. Based on this on-chain analysis, here is what could be next for the cryptocurrency.

Hedera Has Traders’ Attention on Lock

Some days back, BeInCrypto reported how HBAR’s open interest surged to $220 million. But as of this writing, the same indicator, according to Glassnode, has risen to $417.98 million. OI, as it is fondly called, represents the total number of open positions in a contract, with each position having an equal buyer and seller.

An increase in OI suggests that traders are actively increasing their market positions, with buyers becoming more aggressive than sellers, driving the overall net positioning higher. Conversely, when OI decreases, it indicates that market participants are reducing their positions, signaling less market activity.

Furthermore, the rising price paired with increasing OI may seem to suggest more longs (buyers) than shorts (sellers). The true takeaway is that participants are either ramping up or unwinding their positions, with a growing OI typically indicating a stronger trend.

Therefore, the increase in the altcoin’s OI with the recent rally suggests that HBAR’s price might soon trade higher. Meanwhile, the token’s funding rate has also remained in the positive region. 

A positive funding rate indicates that the contract price is trading at a premium to the index price, with long positions paying funding to short positions. Conversely, when the funding rate is negative, the perpetual contract price trades at a discount to the index price, meaning short positions pay funding to long positions.

Considering the c

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Author: Victor Olanrewaju